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mic DynEagagement n
Making Everything Easier! ™
Randy Brasche John Quaglietta Allen Wyatt
Today’s challenging global economic climate has created tremendous obstacles for every business. How do you differentiate yourself in a commodity marketplace? How do you extend the power of traditional marketing to new vehicles based upon Social Media and the Web? And, how do you retain your most valuable customers? If you’ve asked yourself any of these questions over the past year, then this book is for you. Dynamic Customer Engagement For Dummies provides a roadmap to help you navigate through the new world order of customer sales and service. Based upon our experiences with 5,000 global enterprises, Dynamic Customer Engagement is the new strategy to drive growth and brand loyalty in a challenging marketplace. We’d like to share our knowledge with you in this book to help you better engage customers to retain them, drive proﬁts, and contain costs. We wish you success as you embark on this new journey. Genesys Telecommunications Laboratories 2001 Junipero Serra Blvd Daly City, CA 94014 Phone 888.GENESYS Fax 650 466 1260 www.genesyslab.com
These materials are the copyright of Wiley Publishing, Inc. and any dissemination, distribution, or unauthorized use is strictly prohibited.
by Randy Brasche, John Quaglietta, Allen Wyatt
These materials are the copyright of Wiley Publishing, Inc. and any dissemination, distribution, or unauthorized use is strictly prohibited.
Dynamic Customer Engagement For Dummies® Published by Wiley Publishing, Inc. 111 River Street Hoboken, NJ 07030-5774 www.wiley.com Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana Published by Wiley Publishing, Inc., Indianapolis, Indiana No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at http://www.wiley.com/ go/permissions. Trademarks: Wiley, the Wiley Publishing logo, For Dummies, the Dummies Man logo, A Reference for the Rest of Us!, The Dummies Way, Dummies.com, Making Everything Easier, and related trade dress are trademarks or registered trademarks of John Wiley & Sons, Inc. and/or its affiliates in the United States and other countries, and may not be used without written permission. All other trademarks are the property of their respective owners. Wiley Publishing, Inc., is not associated with any product or vendor mentioned in this book.
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ISBN: 978-0-470-60719-0 Manufactured in the United States of America 10 9 8 7 6 5 4 3 2 1
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Table of Contents
Introduction ..................................................................1 Part I: Driving Growth through Engaged Customers ..........3
Chapter 1: Understanding the Changing Market ...........................5 Chapter 2: Achieving Growth ..........................................................11
Part II: Creating Dynamic Customer Engagement ...........15
Chapter 3: Understanding Dynamic Customer Engagement .....17 Chapter 4: Strategies for Engaging Customers ............................27 Chapter 5: The Benefits of Engagement ........................................35 Chapter 6: Ten Steps (Okay, Eleven) to Engagement .................39
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Some of the people who helped bring this book to market include the following: Acquisitions. at 317-572-3993.com. Editorial Director Publishing and Editorial for Consumer Dummies Diane Graves Steele. Consumer Dummies Composition Services Debbie Stailey. Acquisitions Mary C.the5thwave. . please send us your comments through our Dummies online registration form located at http://dummies.com. Vice President and Publisher. or unauthorized use is strictly prohibited.com.S.Publisher’s Acknowledgments We’re proud of this book. Corder. distribution. please contact our Customer Care Department within the U. Vice President and Publisher Mary Bednarek.com) Composition Services Project Coordinator: Kristie Rees Layout and Graphics: Wiley Composition Services Proofreader: Melissa Cossell Publishing and Editorial for Technology Dummies Richard Swadley. Editorial. and any dissemination. and Media Development Project Editor: Jennifer Bingham Editorial Manager: Rev Mengle Business Development Representative: Karen Hattan Custom Publishing Project Specialist: Michael Sullivan Cartoons: Rich Tennant (www. at 877-762-2974. or fax 317-572-4002. contact bizdev@wiley. For details on how to create a custom For Dummies book for your business or organization.S. contact BrandedRights&Licenses@ Wiley. custhelp. outside the U. For information about licensing the For Dummies brand for products or services. For other comments. Vice President and Executive Group Publisher Andy Cummings. Director of Composition Services These materials are the copyright of Wiley Publishing. Inc. Executive Director.
can create brand champions and loyal customers based on the Dynamic Customer Engagement building blocks and your company’s unique environment. or unauthorized use is strictly prohibited. and formulate your own Dynamic Customer Engagement plan. distribution. These materials are the copyright of Wiley Publishing. understand the basics. and any dissemination. you’re probably challenged to find new ways to differentiate yourself and hit your revenue goals. you first need to take a step back. By following the recommendations in this book.Introduction n today’s chaotic marketplace. Before you run into your boss’ office with this great news. How can you establish a unique relationship with your customers that enables you to stand out from the competition? How can you create an extremely loyal customer base that will never defect to the competition and will make all of your sales dreams come true? I About This Book Your silver bullet can be found within this book. It’s called Dynamic Customer Engagement. As an executive or manager responsible for customer service or sales. Your unique strategy. . you’ll be on your way to establishing profitable relationships with your customers that can withstand an evolving marketplace and even the fiercest competition. everyone is looking for the one silver bullet to beat the competition. Inc. effectively implemented.
but there are a few times where a technical tidbit crops up. The handy way that we identify such information to you is through the use of clever icons. distribution. they are not essential to your well-being. While these are undoubtedly interesting. . Inc. These materials are the copyright of Wiley Publishing. and you know that you need to take note. Betcha didn’t think this was gonna be a technical book. you may find the accompanying information helpful if you remember it — at least for a while.2 Icons Used in This Book Some information we present in this book warrants extra special treatment. Here’s what to look for: If there is something we feel is cool and can help you with all this Dynamic Customer Engagement stuff. it’s not. we call it out by putting this nifty little icon beside it. What was this about? We almost forgot! When you see this icon. or unauthorized use is strictly prohibited. Notice one of these. and any dissemination. and no harm will befall you if you just skip over them. did ya? Well.
. distribution. and any dissemination. Inc.Part I Driving Growth through Engaged Customers These materials are the copyright of Wiley Publishing. or unauthorized use is strictly prohibited.
Inc. or unauthorized use is strictly prohibited. It also goes over some of the better ways to make customers your best friends. distribution. . and any dissemination.his part discusses the changing market and why companies are scrambling to retain customers. T In this part . . These materials are the copyright of Wiley Publishing. .
you’re probably facing some frustration as you recognize that the “old ways” aren’t always working and there is no clear-cut consensus on what the “new ways” really should be. the Web and shifting market dynamics have radically changed the way companies and their brands These materials are the copyright of Wiley Publishing. with a variety of plans to identify. qualify. Regardless. and any dissemination. or unauthorized use is strictly prohibited. Perhaps you’ve been using the same plan for decades. procure. and keep customers. Looking at the Basics Your frustration is easily understood. Inc. . perhaps you’re still casting about for a plan that will work for you.Chapter 1 Understanding the Changing Market In This Chapter ▶ Understanding the evolution of brand loyalty ▶ Looking at key market trends C hances are good that you and your company have come up. distribution. over the years. Over the past decade.
or unauthorized use is strictly prohibited. television advertising and direct marketing influenced your purchasing decisions. distribution. Realizing Traditional Marketing Is Broken Somebody broke traditional marketing and you didn’t get the memo? Unfortunately. not so many people would have been caught by surprise. Today. . If there had been. how did you (as a consumer) identify with your favorite brands? Most likely. But it’s a brave new world out there. In the past. there wasn’t a memo.6 interact with customers. brand decisions are based on a new world order that marginalizes traditional marketing while giving tremendous power to the consumer. bucko! These materials are the copyright of Wiley Publishing. and any dissemination. Inc. Companies are now faced with five elements that tend to erode brand loyalty: ✓ Traditional marketing is more difficult with new regulatory and behavior patterns ✓ The Internet has introduced a pervasive “sameness” in products and services ✓ Multi-channel information sources create new levels of complexity for businesses ✓ Customers have new information and purchasing power that they previously didn’t have ✓ Building customer relationships is no longer limited to a single company department This chapter explores some of these earth-shattering trends that erode brand loyalty and present unique challenges in the market.
7 New technology and regulatory laws are restricting the ways companies can engage their customers.com. companies are looking for new ways to captivate today’s consumer. When was the last time you watched a television commercial? Most likely. mySimon. if you visit sites such as Amazon. or PriceSCAN to automatically find the best price from any online vendor. . It’s also very easy for consumers to use popular search or price tools such as Google. or financial services from competitive sites. clothing. home electronics. you’d probably have a hard time telling the difference between books. regardless of what they sell. or unauthorized use is strictly prohibited. Looking at Everything as a Commodity The Internet has created a new virtual marketplace where it’s almost impossible to differentiate yourself. Overstock. You’re probably also thankful that government regulations are keeping those pesky telemarketers from calling during dinner or stuffing your mailbox full of junk. Expedia. This almost leads to a “sameness” among companies. For example. Some say that the Internet is the great equalizer. distribution. or your local bank. travel packages. Ultimately. The list goes on and on. These materials are the copyright of Wiley Publishing. it “levels the playing field” for companies of all sizes. and any dissemination. And you’re no longer annoyed by those online computer pop-up ads because you’re protected by computer security software. Inc. you now zip through commercials by hitting the fast-forward button on your DVR (digital video recorder).com.
Understanding that Customers Now Have the Power Do you feel empowered? You should. over the phone. and later walk into a store to seal the deal. not to mention added frustration for the customer. For example. consumers can exercise their purchasing power on a variety of fronts: in the store. customers have a booming megaphone and can forcefully express their displeasure through blogs. Inc. In this case. most companies are having separate. Today. a customer may research a product over the Internet. distribution. call the contact center with questions. . Sure. Although having multiple contact points provides greater convenience for the customer. these various channels are creating new headaches for companies. focused online communities. compartmentalized conversations with customers — each unaware of the previous conversation. or through social media tools such as Twitter. These materials are the copyright of Wiley Publishing. but it didn’t do much to change the company’s behavior. and any dissemination.8 Communicating via Multiple Channels Creates Complexity Today. Facebook. What did you do in the past when you received dismal customer service? Most likely you carried out your revenge by taking your business elsewhere and bad-mouthing the company to your friends. it felt good to vent. and YouTube. or from a computer or smartphone. you’re a customer. or unauthorized use is strictly prohibited. This can translate into missed revenue opportunities.
along with marketing. For example. As a result of one major blunder with a customer. distribution. these activities are no longer confined to the four walls of the contact center. Making Customer Engagement Everyone’s Responsibility When you think about the customer experience. an intricate ritual involving many organizations outside of the contact center comes into play. sometimes. Historically. These materials are the copyright of Wiley Publishing. Customer engagement and experience requires sales and service to be treated as a business function. when you call a company to open a new account. Inc. branches. outsourcers. customer sales and service have typically been synonymous with a single department. or unauthorized use is strictly prohibited. online sales. Today. and remote organizations all play an integral role. companies have taken some disastrous PR hits and. The contact center.9 After a bad experience. the contact center probably immediately comes to mind. customers are using these new tools to expose the offending companies to an audience of millions of people and potential customers. and any dissemination. erosion of shareholder value. back office. . handing over the responsibility of the relationship with the customer from one department to many.
10 These materials are the copyright of Wiley Publishing. . Inc. distribution. and any dissemination. or unauthorized use is strictly prohibited.
your BFF. distribution. and any dissemination.) Back in the business world. “forever” means until a new BFF comes along. How do you give customers what they want and foster a positive feeling about your brand to generate loyalty — all while exceeding expectations? Seeking Great Interactions Think about your best friend or. a relationship with your best friend is no different than a relationship with your best customer. or unauthorized use is strictly prohibited. (Not up with the lingo? BFF means best friend forever. Inc. as co-author Allen’s 16-year-old neighbor says. The relationship with your best friend spans conversations and experiences over time.Chapter 2 Achieving Growth In This Chapter ▶ Defining your best friends ▶ Differentiating through engagement F aced with the challenges business faces today (see Chapter 1 for more). Most These materials are the copyright of Wiley Publishing. In her world. every company is (or should be) re-evaluating how they do business and engage their best customers. .
and any dissemination. Inc. your biggest advocate. ✓ Willingness to purchase more: Engaged customers purchase additional products. and will always recommend you to other friends. or unauthorized use is strictly prohibited. These materials are the copyright of Wiley Publishing. Making Every Customer Count So. distribution.12 importantly. ✓ Ability to contain costs: Engaged customers are low-maintenance (the least-expensive to service). establishes a positive (or negative) relationship and helps drive your growth objectives. ✓ Reluctance to switch: Engaged customers are loyal to a brand or company. . In the same way. what does your best friend have to do with your company achieving its revenue goals? The answer is quite simple: An engaged “best friend” relationship with your customers can drive long-term growth objectives in four key areas: ✓ Likelihood to recommend: Engaged customers make brand recommendations to others. your best friend is loyal. every interaction or conversation with your customers. over time. low-maintenance. you’re probably asking yourself.
and any dissemination. Inc. ✓ Buy more: The banking and hospitality industries often experience the greatest customer turnover. in turn. For all other major industries except healthcare. both of these industries can generate more than $206 million per year from their existing customers. This word of mouth dynamic is most significant (continued) These materials are the copyright of Wiley Publishing. The results of the study demonstrate a clear link between customer engagement and revenue objectives: ✓ New sales: Hotels that provided a quality customer experience benefited the most. and reluctance to switch. the difference is more than $260 million per year on a base of $10 billion in revenues. influence future purchase decisions. ✓ Word of mouth: Customers have great memories and always recount their positive and negative experiences to friends. and colleagues. willingness to buy more. family. The model incorporated three major elements associated with loyal customer behavior: likelihood to recommend. . The annual revenue increase associated with the customer experience translated into a whopping $311 million. These discussions with potential customers. Fortunately.13 The correlation between engagement and growth Forrester Research recently conducted a study about the correlation between the customer experience and revenue objectives. distribution. or unauthorized use is strictly prohibited. when providing a quality customer experience.
distribution. and any dissemination.14 (continued) for airlines. Inc. Based upon these compelling results. or unauthorized use is strictly prohibited. which can gain $111 million from these recommendations. how will you create a customer engagement environment that drives bottom line results? These materials are the copyright of Wiley Publishing. where it represents more than $118 million per year. . Next on the list are wireless carriers.
or unauthorized use is strictly prohibited.Part II Creating Dynamic Customer Engagement These materials are the copyright of Wiley Publishing. and any dissemination. . distribution. Inc.
and any dissemination. Inc.In this part . his part explains Dynamic Customer Engagement and shows you how to assess where you are. . . It also explains how to create a Dynamic Customer Engagement plan and the benefits of doing so. or unauthorized use is strictly prohibited. . T These materials are the copyright of Wiley Publishing. distribution.
Inc. Sounds simple. It’s dynamic because you’re proactively anticipating your customer’s needs and.” The deceiving part is that differentiating your brand and company in a commodity marketplace through Dynamic Customer Engagement doesn’t happen overnight (but it is within your reach). distribution. or unauthorized use is strictly prohibited. working its way into your business process. D These materials are the copyright of Wiley Publishing.Chapter 3 Understanding Dynamic Customer Engagement In This Chapter ▶ Understanding the guiding principles ▶ Looking at the building blocks ▶ Surveying your environment ynamic Customer Engagement is the measure of the strength of a relationship a company or brand has with its customers over time. over time. . right? Perhaps it is better to say that it is “deceptively simple. the output of this anticipation becomes a normal part of your day-to-day business. and any dissemination.
you need to leverage every ounce of information you have about your customer. These four concepts can be used to engage customers in ways that make them feel they’re in an active. or smartphone. This means that people interacting with customers need to have access to all necessary information regardless if the interaction is taking place on the phone. When your customers want to find you. self-service. ✓ Personalized: Customers like to feel special — don’t we all? You need to intimately know your customer the moment they contact you in order to cater to their specific needs. or SMS. and any dissemination. distribution. Web. or unauthorized use is strictly prohibited. . Inc. your resources need to get it right the first time — in today’s world you don’t get many second chances.18 Listing Your Guiding Principles Your company can create an engaging customer experience by implementing a simple four-step framework. These materials are the copyright of Wiley Publishing. To do this. e-mail. they want you to be available 24/7 through a variety of channels spanning phone. ✓ Competent: You need to ensure that you have the right resources supporting you. they require ease-of-contact and short wait times. chat. committed relationship with your company: ✓ Convenient: This is the most basic rule of customer engagement. Because every interaction creates a lasting impression. And.
every customer interaction is an opportunity to add additional value to deepen the relationship. Your customers will appreciate that you’re taking the initiative. . Looking at Basic Building Blocks Five fundamental building blocks are used to build a customer engagement strategy (see Figure 3-1). and mobile devices. Every customer interaction with your brand or company creates a lasting impression. Web. companies are challenged to manage many different interaction channels including phone. and any dissemination. or information. Inc. You need to immediately anticipate your customers’ needs — without them having to tell you. services. The following sections discuss them in detail. And. or unauthorized use is strictly prohibited. Consider the following scenario: Isn’t it nice whenever your favorite restaurant makes recommendations based on your preferences? Your customers are no different. These materials are the copyright of Wiley Publishing.19 ✓ Proactive: This is the dynamic part in Dynamic Customer Engagement. You should inform them about relevant products. face-to-face. This challenge is compounded as customers change interaction channels during a sales or service process. Today. distribution. Interactions Your customers have one thing in common: long memories.
That personal frustration should help illuminate the decisions you make within your own company. These materials are the copyright of Wiley Publishing.20 Performance Interactions Dynamic Customer Engagement Processes Resources Infrastructure Figure 3-1: Dynamic Customer Engagement building blocks. that social media is providing another powerful channel for customers to very publicly discuss your product and brand — for better or worse. too. distribution. or unauthorized use is strictly prohibited. and any dissemination. Inc. purchasing history. or recent transactions when you contact them from different interaction channels. preferences. Remember. . You may have experienced the frustration of a company that doesn’t remember your account number. Frustration is no longer suffered singularly.
These materials are the copyright of Wiley Publishing. . Every interaction must count. personnel and systems that interact directly with customers are your Dynamic Customer Engagement ambassadors. combating customer defections. Resources Your reputation with customers is built through many resources. knowledge workers. outsourcers. A typical airline has over 50 million interactions with customers every year. including agents. Equipping resources (both personnel and systems) with the right information about a customer and the context of their relationship with your organization is an important part of recognizing a resource’s full potential. it is the sum of these relationships that form the lasting impression a customer has about your organization. at-home agents. Inc. distribution. Most of these interactions are in bursts. and attaining revenue objectives. and any dissemination.21 Consider the importance of each interaction. or unauthorized use is strictly prohibited. Competent ambassadors can make a tremendous difference to minimize costs. and automated systems. say 15 to 20 seconds at a time. while delivering high levels of customer service. The opportunity to delight or disappoint can occur 50 million times a year. But. Accounting for up to 60 percent of your company’s overhead.
Two key points to remember: ✓ The infrastructure decision needs to be made in the context of what experience you want to create for your customer. distribution. and resources that feed a process.) This may include servers. and support. How processes are organized and executed affect the customer’s experience with your company. Inc. Processes are the intellectual capital of your organization. Processes should be viewed as the brackets that contain the experience. outputs. and other software. A customer’s experience is the sum of the inputs. but the strength of that block is in direct correlation to how that block is utilized to facilitate and strengthen customer relationships. These materials are the copyright of Wiley Publishing. sales. and designed in such a way as to focus on the customer. and other technologies that support your customers. you’ll probably find a ton of hardware. This stuff is the foundation of your Dynamic Customer Engagement structure that empowers every employee responsible for customer service. applications. and any dissemination. or unauthorized use is strictly prohibited. . (In IT departments that haven’t been cleaned out in a while it may be a ton and a half or two tons. customer relationship management software. Processes Every customer interaction incorporates an underlying customer process.22 Infrastructure If you pay a visit to your IT department. billing systems. ✓ Infrastructure is a building block.
these processes are managed independently in the back-office through a Business Process Management (BPM) or Service Request system. this isn’t an audition for a play or a movie. Although your initial phone call to the insurance company may have been a pleasant experience. repeatable. For example. Unfortunately. senior executives and business management are now scrutinizing the performance of customer service and sales operations. . If your organization is committed to customer engagement. most reports or Key These materials are the copyright of Wiley Publishing. Performance No. Processes are often overlooked as part of the customer engagement experience. over time you grow from your first uncertain steps to the performance of a trained sprinter. The type of performance we are talking about is more akin to the performance of an athlete. or unauthorized use is strictly prohibited. the overall experience is soured if the insurance claim isn’t processed quickly. Inc.23 Great customer experiences are deliberate. Unfortunately. Often. and being deliberate means creating processes that center around the customer and are efficient. distribution. calling your insurance company to file a claim automatically initiates a process involving many organizations across the company. and any dissemination. That type of performance is best left to a different book. Because customer engagement is driving revenue growth. these systems can’t find the right person to do the work and guarantee that it’s done on time. and of value to both the organization and the customer.
introducing a new process. do you ask yourself the question. Most KPIs are operational in nature and focus on efficiency or effectiveness from the viewpoint of the organization. ask yourself the following questions: ✓ When you think about making changes in your organization. or whatever. hiring new employees. “How will it impact my customer?” ✓ If you were to sit back today and think about how your company is organized. As you do so. would you consider us for future purchases? Assessing Your Environment Do you care about the environment? You should — particularly the environment within your organization. distribution. would you say it is These materials are the copyright of Wiley Publishing. it probably makes sense to first take stock of your environment and company. and any dissemination. Before you can successfully formulate your own Dynamic Customer Engagement plan. Inc. be it a technology purchase. The sum and importance of these operational metrics can be best quantified in two questions to the customer: ✓ What is the likelihood you would recommend our product or service to one of your friends or colleagues? ✓ Given the experience with our organization to date. . They have little to do with overall financial performance or customer experience.24 Performance Indicators (KPIs) don’t provide a clear picture of how Dynamic Customer Engagement impacts the bottom line. or unauthorized use is strictly prohibited.
consume. ✓ Are you getting the most out of your people? ✓ Are your customer interactions compartmentalized within different departments? ✓ Are your agents aware of previous conversations as customers jump from one interaction channel to another? ✓ How do you utilize your existing customer applications and data to manage customer interactions (for instance. where do you send your high value customers when they call your company)? ✓ Do your agents and resources have one singular view into customer applications and data? Do these resources have access to every bit of customer data? ✓ Are your back-office resources that handle customer-related work items managed like your front-office/contact center counterparts? As work is sent to knowledge workers. distribution. and any dissemination. and current workload? Can you measure the efficiency and effectiveness of specific work activities? ✓ How does your organization generate. or unauthorized use is strictly prohibited. skill-sets. are you aware of resource availability. and act on customer information? Do you use it to strengthen interactions with customers? What metrics are driving your decision-making process? Do you have the appropriate level of business context associated with customer activity? These materials are the copyright of Wiley Publishing. . Inc.25 around a product or service or around the customer? And ask the same question about how you utilize resources.
But don’t fret. distribution.26 The answers to some of these questions may expose weaknesses in your environment. you’ll be in a better place to make the required changes to successfully implement the strategies necessary to implement each of the five Dynamic Customer Engagement building blocks. Inc. and any dissemination. These materials are the copyright of Wiley Publishing. . or unauthorized use is strictly prohibited. By honestly assessing your situation.
distribution. often ends up having many independent conversations with the company across different interaction channels. interacting with the average company.Chapter 4 Strategies for Engaging Customers In This Chapter ▶ Building a Dynamic Customer Engagement enterprise ▶ Strategizing Customer Engagement elements H ow can you now translate the ingredients for dynamic interaction into actionable strategies that can drive growth and market differentiation? We give you some answers in this chapter. The average customer. Inc. Breaking Down Conversational Silos Silos don’t only exist down on the farm. or unauthorized use is strictly prohibited. The problem is that these channels are often managed by These materials are the copyright of Wiley Publishing. . and any dissemination. They also exist quite naturally in corporate America.
and SMS applications. and any dissemination. distribution. Over time. Rather. And agents must immediately have detailed information and visibility about every customer at their fingertips. this scenario isn’t a dream. Over the past decade. it must seamlessly transition — including complete customer data. chat. re-use. Don’t stress. think about how will you use. you’ve probably spent a lot of money on this stuff. You can actually break down customer service and sales silos to create this nirvana. These materials are the copyright of Wiley Publishing. or unauthorized use is strictly prohibited. If an interaction begins on the Web and jumps to the phone. and mobile interaction channels are probably supported by a slew of technologies and applications including contact center/customer service hardware and software and e-mail. Inc.28 different organizations. Wouldn’t it be nice if an agent immediately knew about a recent complaint that a customer submitted on your Web site when they called the contact center to follow up? Or knew about their online purchasing preferences and history if they decided to purchase on the phone — or vice versa? How can you reach this level of customer experience? We like to call this nirvana crosschannel conversation. you don’t need to throw anything away. But it requires both a comprehensive technology and operational strategy shift and commitment: ✓ Technology: Each of your voice. . and combine the existing technology. Web. these “silos” must be dissolved so that customers have one conversation with your company. Don’t pinch yourself.
These materials are the copyright of Wiley Publishing. WFO is about organizing and deploying resources in accordance to their strengths. your human resources (also known as co-workers) must be made aware of what your organizational goals are in relation to customer engagement. They must be equipped to effectively do their jobs and given responsibility to act. distribution.29 ✓ Operational: Customer-service and sales silos are traditionally managed by operational fiefdoms. Customers often experience the negative consequences of these fiefdoms because a phone or Web agent is unable to “connect-the-dots” through the many contact center. Maximizing them requires understanding how to best deploy them to take advantage of their strengths while simultaneously improving on their weaknesses. Inc. . marketing. and any dissemination. They also need to know their role and contribution to this effort. You need to get to a place where each of these fiefdoms are “playing nice” in the same sandbox. A proven strategy used by many is workforce optimization or WFO. sales. your customers will appreciate that you’ve made them a priority by taking the high road and transcending internal politics. and service organizations. In order to do this. or unauthorized use is strictly prohibited. It’s also about recognizing weaknesses in skills and carefully formulating an ongoing professional development plan designed to increase resource knowledge in key areas. Maximizing Your Resources Resources — both human and systems — are your greatest assets. As a result.
and any dissemination. customer value and segmentation take on new dimensions. For instance. Social media channels represent a new customer engagement opportunity that must be aligned with your existing voice and Web channels. distribution. . or unauthorized use is strictly prohibited. 45 million Twitter members spent 300 million minutes on its site. ask yourself these questions about customers: ✓ Are they super influencers? (In other words. and LinkedIn. Inc.30 The power of social media Your cross-channel conversation strategy must incorporate the major social media channels such as Twitter. Facebook. During the same period. customers are segmented and routed to agents based on perceived business value to the company. In the traditional contact center world. 2009. do they have the ability to influence followers or subscribers on a company’s forum Web site?) ✓ Do they have large followings on Twitter? ✓ Do they have blogs with large audiences and the potential to adversely affect your brand with one posting? ✓ How many times have they commented? ✓ What is their accuracy? ✓ Do they comment positively or negatively about products? These materials are the copyright of Wiley Publishing. YouTube. These statistics represent a lot of “engaged” eyeballs. 250 million Facebook members spent 13.9 billion minutes on its site. In a social media world. Why? Consider the following statistics: In April.
For most companies. and growth objectives are in direct conflict with one another — and with the expectations of your customers. today’s application interfaces and Web standards provide the tools to use what you already have to create a customer engagement infrastructure that empowers agents. You can use the following to actually tie all your systems together. building this environment from disparate and legacy systems may seem like a daunting task. or unauthorized use is strictly prohibited. distribution. streamlining operations. we don’t want to drive you from the room screaming. Inc. companies are investing in optimization initiatives with the goal of gaining visibility into operational performance. customer service representatives. To strike the appropriate balance. systems. . and any dissemination. Using Your Existing Technology Your workforce relies on countless technologies.31 For most companies. workers are happy and challenged — and will become effective brand ambassadors to customers and constituents. and applications to engage customers and create brand champions. to create a seamless interaction for customers: ✓ Customer Relationship Management (CRM) applications: Incorporate valuable customer data to manage and prioritize interactions. Through ongoing optimization and edification. and back-office workers. quality. These materials are the copyright of Wiley Publishing. we aren’t going to suggest you go out and spend a gazillion dollars on new technology. and driving revenue into the business. Fortunately. cost. No.
or unauthorized use is strictly prohibited. distribution. Unfortunately. many of these core processes are detached from the overall customer experience and not prioritized by business value or service level requirements. Inc. those positive feelings and goodwill are eventually extinguished when your application is mired in the back office for three weeks — and you take your business elsewhere. . and any dissemination. However. ✓ Homegrown applications: Utilize standards to incorporate homegrown applications into your customer engagement framework. Consider the following example: As a high-value customer. you may call your bank to initiate an application for a home equity loan. Although the bank may have prioritized your initial phone call based on your valued customer status. Your experience applying for the loan over the phone is extremely pleasant. they missed a prime opportunity to similarly prioritize the application (the business process) in the back office to win your home equity loan business.32 ✓ Business Process Management (BPM) applications: Align customer-service processes with business priority and value with the ideal back-office or knowledge-worker resource. Remembering Your Processes Every customer engagement strategy is dictated by an underlying set of customer-related processes. ✓ Telephony hardware: Virtualize disparate telephony hardware systems to manage voice interactions while integrating Web and mobile interactions. These materials are the copyright of Wiley Publishing.
and purchase history. Inc. You’ve probably noticed those data points lying around the office. Web clicks. status. . At the same time. how do you classify customers based on current and potential profitability? This insight determines how individual customer interactions are prioritized. by fulfilling the needs of each customer by segment. or unauthorized use is strictly prohibited. and purchase history all paint a disconnected picture of an individual customer experience. distribution. you need to measure the performance of agents. and other customer-facing resources to determine their impact on your bottom line. chat sessions. high-performance companies must measure business outcomes in the following areas to guide decisions and ongoing refinements: ✓ Customer segmentation: Going on customer activity. and any dissemination. managed. and targeted for specific opportunities. customer service representatives. collecting dust.33 Gaining Visibility into Business Performance Today’s Global 2000 enterprise is capable of producing millions of data points a day associated with customer activity and engagement. Similarly. For example. Ultimately. These materials are the copyright of Wiley Publishing. Phone calls. Isn’t it about time to dust off those data points and do something with them? It really is necessary so that your company can create a complete and integrated view of each customer across multiple products and channels. companies can better engage their most profitable customers for incremental revenue.
and other sources into relevant. and so on). or unauthorized use is strictly prohibited. and drive revenue growth. distribution. actionable insight. many organizations fail to correlate business outcomes associated with individual agent activity. the Royal Bank of Canada has grown its market capitalization from $18 billion to $50 billion over a six-year period. But what if this agent also had the highest cross-sell/upsell rate within the contact center? Measuring and aligning business outcomes with standard operational metrics is essential as your resource pool becomes the new engine for revenue growth. Web. Although today’s agent metrics focus on raw interaction details (average call time. ✓ Anticipate customer needs: Predicting customer behavior is essential when engaging customers and creating the optimal customer experience. These materials are the copyright of Wiley Publishing. ✓ Agent performance: Agents and customer service representatives are on the front line to minimize customer defections. timely. calls in queue. you may be concerned that an agent’s average call time exceeds the average for all other agents. Inc. . personify a company’s brand. For example. and any dissemination.34 by segmenting its customers based on business requirements. Your company needs to transform the multi-level customer activity from the phone.
or unauthorized use is strictly prohibited. what sort of dramatic changes will you see in your business? In this chapter. if you do execute your own Dynamic Customer Engagement plan what can you expect? When you’re done. Inc. and any dissemination. distribution. . Get several and plant them out behind your office. we discuss some of the tangible benefits your company can experience after completing its Dynamic Customer Engagement transformation.Chapter 5 The Benefits of Engagement In This Chapter ▶ Achieving differentiation in a commodity marketplace ▶ Cutting costs ▶ Meeting or exceeding growth objectives ▶ Relishing engaged customers and employees o. right? These materials are the copyright of Wiley Publishing. This is an easy way to grow market share. S Growing Market Share and Wallet Share Run down to the local garden store and ask them for a packet of market share seeds.
the best way is through implementing your Dynamic Customer Engagement strategy. Customers with a history of positive interactions are more likely to consider new products and services from a company they already do business with. distribution. Once your strategy is hitting on all cylinders. In an era where customer turnover is high for certain industries and the ability to switch to a competitor is simple and seamless. In no time. When you do it right. and any dissemination. you’ll be building a base of high-value. or unauthorized use is strictly prohibited. marketing professionals can better tailor product and service offers to their customers’ needs. Similarly. Knowing a customer’s transaction and service history. you’ll be increasing your customer lifetime value (see sidebar) and gobbling up market share. committed customers. prospective customers will be attracted to buy since their friends referred them to you. .36 Actually. Inc. Minimizing Customer Turnover It almost goes without saying that engaged and happy customers are less likely to defect to the competition. (Resolving a complaining customer into a happy customer is a win-win!) These materials are the copyright of Wiley Publishing. Dynamic Customer Engagement can ensure that your customers stay put. engagement can even turn unhappy customers into loyal brand fans.
and any dissemination. If you consistently create the best customer experience. your customers will continue to buy more and recommend you to friends and colleagues. . a metric that is sometimes measured by something known as customer lifetime value. This is an estimate of how much money a company will make from ongoing relationships with customers. That’s because keeping existing customers is associated with ongoing revenue. customers will take notice when your brand is These materials are the copyright of Wiley Publishing. Dynamic Customer Engagement helps you stand out from the crowd. Enter Dynamic Customer Engagement. This isn’t rocket science and you don’t need a complicated formula to figure it out. Given that many products and services are difficult to differentiate. Differentiating Yourself No matter what industry you’re in. Inc. Unfortunately.37 The importance of customer lifetime value You know that it costs more money to attract new customers than it does to keep existing customers. The better way to keep customers happy is to establish a best friend forever (BFF) relationship with them (more on that in Chapter 2). distribution. many companies boil the ocean and employ a ton of mathematical and scientific formulas to determine how to do this. or unauthorized use is strictly prohibited. Dynamic Customer Engagement is customer lifetime value.
loyal customers require fewer resources because they call back less and have fewer unresolved issues. Employees. Inc. Creating Happy Employees Your customers aren’t the only ones who benefit from Dynamic Customer Engagement. and exceptional ways. In addition.38 engaging them in unique. distribution. over the phone. or paper-based — where customers interact with your brand and company is an opportunity for competitive differentiation. e-mail. in person. In addition. employees are challenged (in a good way) when they work on higher-value activities focused on increasing customers’ lifetime value. . Every touch point — online. or unauthorized use is strictly prohibited. your company can actually decrease the sales and marketing efforts of selling new features or products. by increasing customer loyalty. Reducing the Costs of Doing Business Engaged customers are always less costly to service. agents. as these customers will tend to keep buying from you. and any dissemination. valuable. and other customer-facing folks will experience a more fulfilling work environment because they’re working with happy (and not irate) customers. These materials are the copyright of Wiley Publishing. Why? On average.
you must stop and realize one thing — an effective Dynamic Customer Engagement Strategy starts with putting the customer at the center of everything you do. These materials are the copyright of Wiley Publishing. B Gain Executive Sponsorship Executing a Dynamic Customer Engagement strategy necessarily involves looping in countless organizations across your company. you will be challenged to single-handedly marshal support and resources across multiple and often conflicting internal organizations. Not an easy task! Although you’re passionate about this initiative. . Eleven) to Engagement In This Chapter ▶ Pulling it all together ▶ Creating an actionable plan efore you start down the road of formulating a strategy and executing it tactically. This chapter goes over some steps you need to take. or unauthorized use is strictly prohibited. distribution. and any dissemination.Chapter 6 Ten Steps (Okay. Inc.
there’s one major item that you may have forgotten: the IT organization. These materials are the copyright of Wiley Publishing. see Chapter 3. Inc. you’ll be in a better place to formulate a cohesive strategy and plan of attack. security. technology platforms. resources. you’ll find that this process becomes a lot easier. Once you gain critical mass with your executive team.40 The success of any Dynamic Customer Engagement initiative requires executive support. and any dissemination. Once you’re aware of gaps and weaknesses. migration plans. engage your IT organization early in the strategy-development process. Ask the Tough Questions Create your own list of self-assessment criteria that spans the five Dynamic Customer Engagement building blocks (interactions. data management. From there. So. the IT organization is required to implement any solution. and performance). or unauthorized use is strictly prohibited. Where to start? Start with your seniorlevel executive. processes. and other variables need to be taken into consideration. Existing investments. infrastructure. For a good starting list of questions. Although many business decisions drive IT requirements. . distribution. connect the dots with other senior-level managers and executives responsible for customer service and sales. Don’t Forget IT After you and your business executives formulate a Dynamic Customer Engagement strategy (with a rocksolid ROI).
At the same time. or fax should be treated with the same care and urgency as an incoming phone call. or unauthorized use is strictly prohibited. or mobile) because these channels are managed by different fiefdoms and may be unaware of previous conversations. and any dissemination. The back office must be part of your Dynamic Customer Engagement strategy. As you build support for your Dynamic Customer Engagement initiative with key executives. Web. distribution.41 Break Down the Walls Organizational silos create interaction challenges whenever customers change interaction channels (phone. Engage the Back-Office Whatever happens in the back office has a direct effect on the front office/contact center: If a customer request or process is broken in the back office. determine how they can help you break down these walls. the Web will become the primary hub through which companies interact with their customers. As such. the contact center is the first to hear about it. Invest in Web and Mobile Channels Over the next few years. . every customer-related work item. mobile devices will also These materials are the copyright of Wiley Publishing. Technology walls create a separate challenge as critical customer data and applications are inaccessible or present multiple views to those interacting with customers. process. Inc.
You need to transform this massive mountain of customer data into actionable insights and decisions that help you continually improve your customer engagement process while understanding what your customers want. and IT resources. and any dissemination. . Assess your existing technology environment and determine how it can support your customer engagement initiative. or unauthorized use is strictly prohibited. companies can leverage many of the common Web standards and protocols to incorporate existing technology investments as part of a Dynamic Customer Engagement initiative. Use What You’ve Got Most companies turn queasy whenever presented with a new business initiative. Create a Feedback Mechanism As you engage your customers. Today. These materials are the copyright of Wiley Publishing. you’re going to learn a lot from them. Your company needs to incorporate Web and mobile (and traditional telephone) channels into a cohesive strategy to remain competitive and relevant in a changing marketplace. Many of these data points will be collected from customer conversations on the phone or through Web-clicks and online purchases. The traditional phone will still retain a vital role in your customer engagement strategy — but will be focused on high-value conversations. software. this scenario creates a perception where companies need to spend more money for additional technology on hardware. Often. Inc. distribution.42 become a primary means for delivering a quality customer experience.
and optimized. empowered.” don’t worry. distribution.” and successful companies over the long haul need to better engage customers. your technology infrastructure and workforce optimization technologies must all work in harmony to ensure that resources are always improving and have access to necessary data and tools. Take Risks Dynamic Customer Engagement is a new initiative for most companies. Dynamic Customer Engagement is a proven strategy to do so. your resources must always be fully leveraged. The key is to first clearly define and understand what you’re trying to accomplish and then assess measurable outcomes. No pain. . “times-are-a-changing. As a result. Inc. you should not be afraid to take risks and experiment to improve sales and service performance.43 Empower Your Resources Resources — both human and systems — are your greatest assets. These materials are the copyright of Wiley Publishing. Help exists in many forms. However. and any dissemination. Our main goal by sharing these valuable nuggets with you is to simply say. no gain. Get Help If you’re thinking to yourself at this point. or unauthorized use is strictly prohibited. “Dynamic Customer Engagement is something we want to pursue but I’m not sure we have the time or experience to do so. because they interact with your highvalued customers. As Dynamic Customer Engagement ambassadors. What might work for one company may not work for another.
distribution. They all possess different experiences. but typically share a common goal of improving the customer experience and providing insight from various industries that you can best use when formulating your strategy. Inc. We recommend consulting with one or many of them. These materials are the copyright of Wiley Publishing. there are many qualified organizations in the marketplace to help you. and any dissemination. .44 If your company needs assistance. or unauthorized use is strictly prohibited.
and make customers happy Open the book and find: • Guiding principles and building blocks for customer engagement • Questions to help you assess where your company is now • Tips on how to build customer engagement • How to create your own engagement plan Go to Dummies. or to shop! Randy Brasche is currently the director of product marketing at Genesys.Stand out from the competition! How do you keep your existing customers? How do you find new ones? By engaging them and making them happy. This book shows you how to dynamically engage your customers and make your customer experience dreams come true. build relationships.com® for videos. step-by-step photos. how-to articles. and anticipate needs • Recognize the benefits — cut costs. Inc. John Quaglietta currently serves as acting Director of Americas Business Consulting at Genesys. grow. Not for resale ISBN: 978-0-470-60719-0 . As an executive or manager responsible for customer service or sales. • Get a grasp on the changing market — things are changing out there and you need to know what’s going on • Grow your customer base — and find your new “best friend” customers • Create Dynamic Customer Engagement — differentiate your brand. Allen Wyatt is the president of Sharon Parq Associates. you’re probably challenged to find new ways to differentiate yourself and hit your revenue goals.
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